6.1. SR 10-06-2008REQUEST FOR ACTION
To Item Number
Ma or & City Council 6.1.
Agenda Section Meeting Date Prepared by
Administration October 6, 2008 Catherine Mehelich, Director of
Economic Develo ment
Item Description Reviewed by
Consider Resolution Authorizing Rental of Certain Units in Lori ohnson, Ci Administrator
Bluff Block Development Reviewed by
Action Requested
The City Council will consider action on the resolution immediately following the HRA meeting.
Background/Discussion
In response to the September 20, 2008 Lion's Park Apartments fire, staff received a request from
Minnwest Bank, owner of the Bluff Block Development in downtown Elk River, as to the City's
consideration to allow temporary rental of certain residential units for displaced families. The Bluffs
owner indicated immediate availability of six 2-bedroom and two 1-bedroom units available to rent to fire
victims.
Staff consulted with the City's development attorney at Briggs & Morgan with regard to any impact of the
proposed change in use pursuant to the February 16, 2006 TIF Development Agreement between the
City and developer. The attached Resolution formalizes certain understandings and approves the
temporary change in use.
Financial Impact
According to the City's Financial Advisors, Ehlers & Associates, the request is not believed to be
problematic from a bond holder or security standpoint due to the Minimum Assessment Agreement in
place for the TIF note.
Attachments
• City Council Resolution No. Authorizing Rental of Certain Units in Bluff Block Development.
~ Aetlon Motion by Second by Vote
Follow Up
C:ADocuments and Settings\jmiller\Local Setting\Tempoxary Internet Files\OLK3E\10 06 08 Action Requested.doc
EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: October 6, 2008
Pursuant to due call and notice thereof, a meeting of the City Council of the City of Elk
River, Sherburne County, Minnesota, (the "City") was duly called and held at the City Hall in
said City on Monday, the 6th day of October, 2008, at 6:30 o'clock p.m.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION NO. 08-
AUTHORIZING RENTAL OF CERTAIN
UNITS IN BLUFF BLOCK DEVELOPMENT
A. WHEREAS, the City and MetroPlains Development, LLC, a Minnesota limited
liability company (the "Developer") have entered into an Amended and Restated Development
Agreement, dated as of February 28, 2006 (the "Development Agreement") in connection with
the construction of a multifamily housing and commercial development located in the City and
defined as the Bluff Block Development and the Jackson Block Development in the
Development Agreement (the "Project"); and
B. WHEREAS, pursuant to the Development Agreement the Developer has
constructed, as part of the Bluff Block Development, approximately 67 units of owner-occupied
housing, together with related parking facilities, (the "Bluff Block Housing Project"); and
C. WHEREAS, in order to accommodate individuals and families displaced by a fire
in the Lions Park Apartments building in the City, the City and the Developer wish to
temporarily authorize leases of the units in the Bluff Block Housing Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota, as follows:
1. Notwithstanding the provisions of the Development Agreement defining the Bluff
Block Housing Project as owner-occupied housing, the City Council hereby authorizes market
rate leases of units in the Bluff Block Housing Project to individuals and families who were
residents of the Lions Park Apartment building in the City during the month of September, 2008.
Such leases shall terminate not later than October 31, 2009.
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2. The approval hereby given to leases of units in the Bluff Block Housing Project is
temporary and for the limited purpose of accommodating individuals and families displaced by a
fire in the Lions Park Apartment building in the City. Such approval does not consitute an
amendment to the Development Agreement and all terms and provisions of the Development
Agreement, as originally executed as of February 28, 2006 shall remain in full force and effect.
The motion for adoption of the foregoing resolution was duly seconded by member
and, after full discussion thereof, and upon a vote being taken thereof, the
following voted in favor thereof:
and the following voted against same:
Adopted this 6th day of October, 2008.
Stephanie Klinzing, Mayor
Attest:
Tina Allard, City Clerk
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